BOSTON  BOARD  OF  TRADE. 


REPORT 

OF  THE 

SELECT  COMMITTEE 

OF  THE 

BOARD  OF  TRADE, 


ON  THE 


CONTROVERSY  BETWEEN  THE  BOSTON  AND 
WORCESTER  AND  WESTERN  RAILROADS. 


AUGUST,  18  6  2. 


BOSTON: 

WRIGHT  &  POTTER,  PRINTERS,  4  SPRING  LANE. 

1  8  6  2.  * 


r  k  f:  t  I  ' 

unoYiunviri' 

i:  hi  Ml 


Office  Board  of  Trade,  ) 
Boston,  Oct.  6,  1862.  ) 

At  a  meeting  of  the  Government  of  the  Board  this  day,  the  fol¬ 
lowing  Report  was  read,  accepted,  and  ordered  to  be  printed  under 
the  direction  of  the  Committee. 

Attest,  LORENZO  SABINE, 

Secretary. 


t /> 

rJ 

<r^ 

<£ 


fl  I  I;  / 


REPORT. 


Upon  information,  in  February,  1862,  that  large  quantities 
of  merchandise  were  detained  at  points  West  of  Albany,  in 
consequence  of  inadequate  means  of  carriage,  the  President 
and  Secretary  of  this  Board  addressed  the  Presidents  of  the 
Boston  and  Worcester  and  Western  Railroads  on  the  subject; 
and  availed  of  the  occasion  to  suggest  to  these  Roads  and  to 
others  with  which  they  are  connected,  the  removal  of  one  of 
the  principal  obstacles  to  a  share  of  the  export  trade  to  Eng¬ 
land  and  the  Continent,  namely,  the  discrimination  in  favor 
of  New  York  and  against  Boston,  in  the  rates  of  freight  on 
the  various  articles  of  food  which  are  wanted  abroad.  The 
replies  which  were  received  led  to  further  correspondence, 
and  to  several  interviews*  at  our  Rooms.  At  these  meetings, 
the  existing  relations  between  the  two  Roads  which  unite  us 
with  Albany  were  freely  discussed  by  their  respective  Presi¬ 
dents,  by  the  President,  the  Vice-Presidents,  and  other 
members  of  the  Government  of  this  Board,  with  the  result, 
finally,  of  an  agreement — signed  on  the  30tli  of  April — to 
submit  the  vexed  question  of  the  division  of  the  receipts  for 
freight  and  passengers  of  the  “joint  business  ”  of  these  Cor¬ 
porations,  to  the  judgment  of  your  Committee,  with  the 
powers  of  Referees.  We  accordingly  met  the  parties,  and 

*  The  first  was  without  previous  arrangement,  and  the  President  of  the 
Boston  and  Worcester  was  not  present. 


4 


heard  their  allegations,  proofs,  and  arguments :  and — on  the 
10th  of  July — made  an  Award,  which,  by  the  terms  of  the 
submission,  may  be  terminated  by  either  party  on  the  31st 
of  May  of  the  very  next  year.  Thus,  the  long  controversy, 
which  has  proved  a  disturbing  element  in  the  business  of 
Boston,  is  hushed  for  the  moment  only. 

The  impressions  made  upon  us  during  the  hearing,  will 
not  soon  be  effaced.  That,  this  Commonwealth,  as  a  large 
buyer  of  bread-stuffs  and  meats,  and  as  the  leading  worker 
of  cotton,  and  wool,  and  leather,  has  a  deep  interest  in  every 
question  which  concerns  an  interchange  of  commodities  with 
the  West — we  knew.  So,  too,  we  knew,  that  this  city,  as  a 
j3oint  to  receive  the  products  of  the  soil  and  to  distribute 
the  products  of  the  factory  and  of  the  workshop,  is  the  centre 
of  the  whole  North,  and  in  commerce,  the  second  in  rank  in 
the  Union.  But,  until  we  heard  “  experts  ”  testify  of  curves 
and  cuts,  of  high  grades  and  of  low,  of  deep  excavations  of 
earth  and  of  rock,  of  mountain  cataracts  and  freshets,  of 
bridges  and  of  culverts,  of  the  wear  and  tear  of  tracks,  of 
cars,  and  of  engines ;  we  had  hardly  appreciated  the  respon¬ 
sibilities  and  discouragements  of  the  noble  men  of  Massachu¬ 
setts  of  the  last  generation,  who  immolated  health,  who 
suffered  pecuniary  loss,  and  who  labored  for  years  without 
requital,  to  open  lines  of  communication  with  the  great 
inland  seas  of  America,  which,  of  the  aggregate  length  of 
fifteen  hundred  miles,  drain  a  domain  of  more  than  three 
hundred  thousand  square  miles,  and,  inhabited  by  a  people 
whose  trade  is  now  quite  three  hundred  and  fifty  millions  of 
dollars  annually :  until  we  had  listened  for  days,  we  were 
but  partially  informed,  we  repeat,  of  the  value  of  the  services 
and  the  sacrifices  of  these  noble  men.  Nor,  had  we  ever 
measured  the  difficulties  of  judiciously  using  and  of  preserv- 


5 


ing,  the  public  works  which  they  projected  and  completed. 
Nor,  had  we  ever  heard  from  the  lips  of  persons  connected 
with  our  great  lines  of  Transport,  long  and  minute  accounts 
of  the  fierce  competition  between  different  cities  for  suprem¬ 
acy,  and  of  the  intense  rivalry  between  railroads  inland,  and 
of  steamers  on  the  lakes  and  sea-coasts ;  nor  undertaken  a 
task  which  suggested  the  question,  Whether — considered 
merely  as  a  mart — the  ultimate  rank  of  every  American  city 
does  not  depend  as  much  upon  the  extent,  the  speed,  the 
cheapness,  and  the  safety  of  its  means  of  transportation  of 
persons  and  of  things,  as  upon  geographical  situation  ? 

Nay  more  :  as,  during  the  hearing,  we  gave  attention  to 
the  general  evidence,  as  we  mused  upon  the  disagreements 
in  memory  in  stating  the  facts  of  past  transactions,  and  upon 
the  intention  or  meaning  of  written  contracts :  as  we  exam¬ 
ined  the  elaborate  tables  prepared  and  put  into  the  case,  to 
show  the  results  of  different  modes  of  dividing  the  receipts 
for  the  “joint-business”  of  the  Boston  and  Worcester  and 
Western  Roads:  as  reference  was  made  to  previous  arbitra¬ 
tion  and  to  applications  to  the  General  and  to  the  Supreme 
Court :  and,  as  we  gave  ear  to  the  arguments  of  counsel,  we 
became  convinced  that,  Consolidation,  as  recommended,  with 
singular  unanimity,  by  a  Committee  of  the  two  Corporations, 
in  1845,  is  the  only  measure  which  can  ensure  permanent 
harmony,  and  give  certain  and  adequate  protection  to  the 
distinctive  business  of  Massachusetts  and  of  Boston,  already 
mentioned.  The  reasons  for  this  opinion,  we  proceed  to  state 
as  minutely  as  the  limits  of  a  Report  will  allow.  Possibly, 
we  shall  be  met  at  the  outset  with  the  remark,  that  we 
interfere  with  the  concerns  of  individuals,  that  these  roads 
are  under  the  direction  of  gentlemen  of  well  known  skill 
and  ability,  who  are  competent  to  manage  their  affairs  with- 


6 


out  counsel  from  your  Committee  or  the  Government  of 
this  Board.  With  all  deference,  we  submit  that  every  sub¬ 
ject  discussed  by  this,  or  by  any  similar  organization,  is,  in 
some  sense,  open  to  the  suggestion  of  intrusion  upon  the 
rights  of  persons  or  of  corporations.  But,  since  the  prin¬ 
cipal  aim  of  a  Board  of  Trade  or  of  a  Chamber  of  Com¬ 
merce  is  to  ascertain,  and  to  correct,  evils  in  trade  and 
commerce,  and  to  examine  questions  which  facilitate  or 
retard  intercourse  between  different  sections  of  the  country, 
we  respectfully  submit  that  neither  form  of  association 
could  be  of  service,  and  both  would  soon  cease  to  exist,  were 
their  inquiries  to  be  limited  to  cases  in  which  there  should 
be  no  intimation  of  intermeddling  with  some  person  or 
with  some  thing.  Besides,  every  one  who  is  familiar  with 
the  origin,  privileges,  and  history  of  the  Boston  and  Wor¬ 
cester,  and  Western  Roads,  and  recalls  the  pecuniary  aid 
afforded  by  the  Commonwealth  to  the  latter,  will  concede, 
we  think,  that  a  plan  which  was  once  proposed  by  their 
own  representatives,  may  be  revived  now  and  by  us,  on  the 
ground  stated  in  their  Report  before  us,  namely,  that  union 
would  promote  the  interests  of  these  Corporations  and  of  the 
public. 

The  Boston  and  Worcester  was  chartered  June  23d,  1831, 
and  opened  to  Worcester  July  3d,  1835;  and  in  1843,  the 
Directors  announced  the  completion  of  a  double  track  for  the 
entire  length,  forty-four  and  three-fifths  miles.  The  Western, 
which  is  a  little  more  than  one  hundred  and  fifty-six  miles 
long,  with  a  double  track  of  one  hundred  and  eight  miles,* 
was  chartered  March  15,  1833  ;  opened  to  Springfield  in 
November,  1839,  and  to  the  Hudson  early  in  1842.  Thus 


*  Eight  miles  more  will  be  completed  the  present  year. 


7 


the  distance  from  Boston  to  Albany  by  this  route,  is  nearly 
two  hundred  and  one  miles. 

As  is  said  by  the  Committee  of  the  two  roads,  in  1845, — 
in  the  Report  to  which  we  have  referred — “  The  great  West¬ 
ern  route,  from  Boston,  the  capital  of  New  England,  to 
Albany,  which  is  the  gateway  of  the  West,  is  so  clearly 
marked  as  a  single ,  distinct  and  entire  route ,  that  it  must 
strike  every  one,  as  the  most  natural  and  proper  course,  that 
the  great  channel  of  railroad  communication  between  these 
two  prominent  points,  should  be  one*  likewise.” 

The  questions  at  issue  between  the  two  Corporations,  are 
thus  stated  in  the  submission  under  which  we  made  our 
Award. 

“  Whereas,  said  Corporations  differ  in  opinion  as  to  the  proportion 
each  is  fairly  entitled  to  receive  of  the  receipts  from  passengers  and 
merchandise  passing  over  the  whole  or  parts  of  both  roads,  which 
differences  are  substantially  as  follows,  to  wit :  The  Boston  and 
Worcester  Railroad  claim  that  a  fair  and  equitable  basis  of  settle¬ 
ment  is,  First,  a  just  and  specific  allowance  or  sum  per  ton  should  be 
paid  out  of  the  joint  freight  receipts  to  each  road,  to  cover  expenses 
of  loading,  unloading,  cooperage  and  collection  charges.  Second, 
That  all  joint  receipts  for  passengers  and  freight  on  each  passenger 
and  each  ton  of  freight  to  and  from  each  station,  should  be  divided 
in  proportion  to  the  distance* each  is  transported  by  each  road. 

“On  the  other  hand,  the  Western  Railroad  claim  that  the  higher 
relative  cost  of  their  road,  higher  grades,  ferry  at  Albany,  and 
advances  on  freight,  and  consequent  increased  expenses  of  operating 
the  road,  entitles  them  to  an  allowance  which  will  more  than  offset 
the  claim  for  any  allowance  for  handling  freight,  &c.,  on  the  part  of 


*  The  Italics  are  the  Committee’s. 


8 


the  Worcester  Road.  Second,  that  they  are  entitled  to  a  higher  rate 
per  ton  and  per  mile  per  passenger  for  all  freight  and  passengers 
passing  over  both  roads,  or  portions  of  both  roads,  than  the  Worces¬ 
ter  Road  is  entitled  to.  Now  therefore,  without  any  intent  on  the 
part  of  either  to  admit  the  correctness  of  the  claims  made  by  the 
other,  said  Corporations  hereby  agree  to  submit  said  differences  to 
Charles  O.  Whitmore,  of  Boston,  George  C.  Richardson,  of  Cam¬ 
bridge,  Nathaniel  Harris,  of  Boston,  James  H.  Beal,  of  Boston,  and 
Joseph  S.  Fay,  of  said  Boston,  a  Committee  of  the  Board  of  Trade 
of  Boston,  &e. 


The  “  differences  ”  here  recited,  are  of  long  standing.  As 
early  as  February,  1845,*  the  Directors  of  the  Western  made 
a  detailed  statement  to  the  stockholders  of  that  road,  of  “  the 
facts  connected  with  the  controversy  ”  which  had  already 
occurred,  and  which  had  caused  them  to  petition  for  legis¬ 
lative  interposition.  They  averred  that  the  Boston  and 
Worcester,  claimed — for  the  joint  business — “  as  a  general 
principle,”  a  “  pro  rata  per  mile”  division,  or,  “  according 
to  the  distance  the  passengers  and  merchandise  were  carried 
on  each  road:”  and,  that  the  exceptions  to  the  rigid  use  of 
this  rule  were,  payment  to  each  Corporation  of  a  specific  sum 
for  certain  station  expenses, — before  division, — on  freight, 
and  slight  favor  to  the  'Western,  on  passenger  fare.  They 
stated  that,  on  the  other  hand,  they  demanded  the  IVorcester 
to  do  all  the  business  to  and  from  the  'Western,  at  less  prices 
than  the  Western  charged  for  the  same  business,  and  less 
than  the  IVorcester’s  own  local  rates.  And  first,  because, 
“  Such  has  manifestly  been  the  design  of  the  Legislature, 
not  only  in  the  provisions  of  the  Worcester  charter,  but  in 
all  their  previous  and  subsequent  enactments  now  in  force 


♦Tenth  Annual  Heport  of  Western,  February,  1845. 


9 


on  the  subject  of  railroads.”  Second,  because  the  “  Western 
has  been,  and  always  will  be,  of  vast  advantage  to  the  Wor¬ 
cester,”  in  opening  “  an  entirely  new  and  almost  illimitable 
extent  of  custom  for  transportation.”  Third,  because  the 
Western  “is  a  large,  wholesale  customer  to  the  Worcester.” 
Fourth,  because  the  high  mountain  grades  of  the  Western, 
require  great  power  and  costly  engines,  and  do  not  allow  the 
carriage  of  as  heavy  loads  as  can  be  transported  over  the 
Worcester:  because  of  the  cost  of  maintaining  a  ferry-boat 
and  ferry  at  Greenbush,; — of  the  expensive  bridge  across  the 
Connecticut,  and  other  wooden  structures  to  keep  in  repair, 
and  many  stone  ■  bridges  exposed  to  particular  perils — and 
the  peculiar  exposure  to  heavy  snows,  and  the  consequent 
delay  of  trains  in  a  sparsely  settled  or  uninhabited  country. 

At  this  early  day,  too,  the  Directors  of  the  Western  spoke 
of  “  one  other  principle  of  controversy,”  from  which, — as 
we  understand  their  remarks — it  seems  they  claimed — as 
“vitally  important” — the  sole  right  to  make,  and  at  plea¬ 
sure  to  alter  a  tariff  for  both  Roads,  and  to  allow  the  Wor- 

* 

cester  a  fixed  sum  for  each  passenger  and  each  ton  of 
merchandise,  of  the  joint  business,  without  stipulation  to 
that  Road  for  increased  recompense,  in  case  of  the  adoption 
of  higher  rates. 

After  the  failure  of  long  and  repeated  negotiations  “  to 
effect  a  compromise,”  an  Act*  was  passed  to  authorize  the 
Western  to  enter  upon  and  use  the  Boston  and  Worcester, 
or  any  part  thereof,  paying  therefor  such  rate  of  toll  or  com¬ 
pensation  as  the  Legislature  may,  from  time  to  time,  pre¬ 
scribe,  or  that  may  be  fixed  under  any  general  law  of  this 
Commonwealth,  Ac. 


*  March  25,  1845. 


2 


10 


The  attempt  to  unite  the  two  Corporations,  which  we  have 
mentioned,  soon  followed.  Committees  of  both  reported* * * § 
unanimously  in  favor  of  union  ;  but  the  Stockholders  of  the 
Boston  and  Worcester  indefinitely  postponed  the  subject, 
“  without  reference  to  the  terms  proposed.”  f 

We  have  not  room  for  details,  and  can  only  say — in  a 
word — that  the  current  of  events  against  the  Western,  was 
strong  and  deep.  It  is  remarked  in  a  communication  to  the 
Stockholders  of  that  Road  which  Addison  Gilmore  prepared 
for  publication,  and  which  was  found  among  his  papers  after 
his  death,  that  at  the  time  he  was  elected  President,  Jan¬ 
uary,  1846,  “A  vexatious  suit  with  the  Boston  and  Worces¬ 
ter  Road  was  pending  before  the  Supreme  Court,  and  many 
other  difficult  questions  remained  unadjusted.  The  stock 
was  selling  at  eighty-five  per  cent,  in  the  market,  that  of  the 
Boston  and  Worcester  Road  at  fourteen  per  cent,  advance, 
the  Boston  and  Maine  at  eleven  per  cent,  advance,  the 
Concord  at  thirty-four  and  one-half  per  cent,  advance,  the 
Fitchburg  at  twenty  per  cent,  advance,  and  the  Old  Colony 
at  six  per  cent,  advance.  J 

But,  the  “  Contract  of  1846,”  §  of  which  so  much  was 
said  at  the  hearing,  and  to  which  we  find  so  constant  refer¬ 
ence  in  the  mass  of  printed  and  written  matter  upon  our 
table,  hushed,  as  if  by  a  magic  charm,  the  unfortunate 
differences  between  these  Corporations.  For  the  purposes 

*  Their  Report  is  dated  December  17,  1845,  and  is  signed  on  the  part  of 
the  Boston  and  Worcester,  by  Jona.  Chapman,  S.  Bartlett,  John  Hathaway, 
and  Moses  William;  and  on  the  part  of  the  Western,  by  Josiali  Quincy, 
Jr.,  Addison  Gilmore,  H.  Andrews,  and  Joseph  Whitney. 

t  Eleventh  Annual  Report  Western,  February,  184G. 

+  Sixteenth  Annual  Report  Western,  January,  1851. 

§  Nathan  Hale  was  President  of  the  Boston  and  W  orcester,  and  Addis-on 
Gilmore  of  the  Western,  at  this  time. 


11 


of  this  Report,  several  years  may  be  passed  at  a  single 
bound  of  the  pen  ;  and  especially,  since  in  another  con¬ 
nection,  we  shall  be  compelled  to  relate  particulars  which, 
by  the  plan  we  have  adopted,  cannot  be  embraced  here.  In 
1858  the  Directors  of  the  Western  spoke  thus,  —  and  we 
prefer  to  use  their  own  words — 

“  In  the  early  history  of  this  Corporation  there  was  much  negoti¬ 
ation  with  the  Boston  and  Worcester  Railroad  Corporation  in  relation 
to  the  manner  of  doing  the  joint  business,  and  of  the  proportion  that 
should  be  received  by  each.  This  negotiation  resulted  in  a  contract 
based  upon  the  principle  of  giving  to  the  Western,  in  consideration 
of  its  higher  grades,  and  higher  relative  cost,  a  higher  rate  of  hires 
and  freights,  than  was  given  to  the  Boston  and  11  orcester  Railroad 
Corporation.  This  contract  underwent  various  renewals  and  modifi¬ 
cations,  but  the  principle  remained  the  same.  Under  the  contract  a 
specific  rate  was  given  for  passengers.  This  had  not  been  changed 
by  any  of  the  modifications  of  the  contract,  and  was  more  than  just 
to  the  Boston  and  Worcester  Corporation ;  as  under  it,  it  appeared 
that  notwithstanding  the  Western  made  much  less  mileage  ot  joint 
trains  according  to  the  length  of  each  road,  the  Boston  and  11  orces¬ 
ter  got  a  much  greater  sum  per  mile  run  of  joint  passenger  trains 
than  was  received  by  the  Western.  The  sum  thus  given  to  the 
Boston  and  Worcester  from  joint  passengers  was  more  than  fifty  per 
cent,  per  mile  of  road  than  was  received  by  the  Western  from  the 
same  source.  In  the  division  of  joint  freights  all  specific  rates  had 
been  ignored,  and  a  sliding  scale  adopted  (as  we  think  through  inad- 
vertance,  and  not  in  accordance  with  the  spirit  of  the  contract) 
which  was  actually  giving  to  the  Boston  and  Worcester  from  twelve 
to  fifteen  per  cent,  more  of  the  receipts  from  the  joint  freight  busi¬ 
ness  than  was  received  by  this  Corporation,  having  reference  to  the 
work  performed  by  each  in  doing  the  business.  Under  these  circum¬ 
stances,  we  in  November,  18o5,  notified  the  Boston  and  11  orcestoi 


12 


Corporation  of  our  wish  to  terminate  the  contract,  which  in  terms 
was  to  expire  after  six  months’  notice  from  either  party.  Then  find¬ 
ing  it  impossible  to  agree  on  the  terms  of  a  new  contract,  we  in  May 
last  applied  to  the  Supreme  Court  for  the  appointment  of  Commis¬ 
sioners  under  the  Statutes  of  1845  and  1857,  to  fix  and  determine 
the  reasonable  compensation  to  be  paid  by  us  to  the  Boston  and 
Worcester  Railroad  Corporation  for  drawing  over  their  road  our 
passengers,  merchandise  and  cars,  and  for  providing  suitable  depot 
accommodations  therefor.  The  hearing  before  the  Commissioners 
thus  appointed  has  been  had,  but  their  award  has  not  yet  been  pub¬ 
lished.  We  think  we  may  reasonably  anticipate  that  they  will  fix 
a  tariff  of  prices  to  be  paid  by  us,  which  will  give  us  a  larger  income 
than  we  received  under  the  last  contract  from  business  passing  over 
tills  Road  to  and  from  the  Boston  and  Worcester  Road.”  * 

In  1860,  the  Directors  of  the  Western  announced  that 
there  had  been  no  fixed  rule  for  the  division  of  the  receipts 
of  the  joint  business,  since  December,  1856  :  that  they  were 
asked  to  pay  almost  as  many  prices  for  the  transportation  per 
ton  of  the  different  classes  of  freight  over  the  Boston  and 
Worcester,  as  there  are  stations  on  the  Western,  and,  that 
thus  far,  this  claim  had  prevented  an  adjustment  of  the  unset¬ 
tled  accounts  between  the  two  Corporations.  They  stated, 
also,  that,  “  as  a  compromise  measure,”  they  had  offered  to 
divide  the  gross  joint  freight  money  “  pro  rata,  according  to 

the  number  of  tons  carried  one  mile  bv  each”  Road.  And, 

*  • 

to  illustrate  the  points  of  difference,  they  put  the  question — 
“  Why  should  the  manufacturer  at  Ware  pay  more  money  for 
carrying  his  cotton  from  Boston  to  Worcester,  if  consigned  to 
West  Brookfield,  than  if  consigned  to  him  at  Palmer;  or  why 
should  the  manufacturer  at  Palmer  pay  more  freight  for  the 


*  Twenty-third  Annual  Report  Western,  January,  1858. 


13 


same  articles  over  the  Boston  and  Worcester  Road,  if  con¬ 
signed  to  Palmer,  than  if  marked  to  Indian  Orchard.”* 

The  topics  discussed  in  the  Report  of  January,  1861, 
belong,  principally,  elsewhere.  Three  things,  however,  may 
be  properly  noticed  here.  First,  for  the  purpose  of  settling 
the  past,  an  offer  by  the  Western  to  pay  the  Boston  and 
Worcester  a  bonus  of  twenty-five  thousand  dollars  to  termi¬ 
nate  the  Brooks,  Hinckley  and  Higginson  Award,  and  sub¬ 
mit  the  whole  matter  in  dispute  to  impartial  men :  second, 
the  proposal  of  the  same,  to  revive  the  contract  which  expired 
May  31,  1856,  and  refer  the  question  of  its  true  construction 
to  the  umpirage  of  three  disinterested  persons  selected  by  the 
parties,  or  appointed  by  the  Chief  Justice  of  the  Supreme 
Court :  and  third,  the  following  significant  sentence  :  “We 
have  heretofore  suggested  that  a  consolidation  of  the  roads 
on  an  equitable  basis  would  at  once  remove  these  sources  of 
differences  so  annoying,  so  interminable,  and  which  bid  fair  to 
exist  at  all  the  numerous  points  at  which  the  interest  of  the 
two  Roads  come  in  contact.  As  another  means  of  relief,  it 
remains  further  to  suggest  that  the  exclusive  privilege  now 
enjoyed  by  the  charter  of  the  Worcester  Company,  between 
Worcester  and  Boston,  expires  on  the  23d  day  of  June  next, 
and  it  will  then  be  in  our  power  with  the  proper  legislative 
sanction,  to  extend  our  Road  by  a  line  wholly  independent, 
or  by  connection  with  other  roads  to  Boston.”  f 

Our  digest,  to  this  point,  is  made  principally  from  the  doc¬ 
uments  put  in  by  the  Western.  We  designed,  at  the  outset,  to 
weave  or  intermix  our  materials  in  a  way  to  present  a  chro¬ 
nological  synopsis  of  the  case  at  a  single  view :  but,  after  two 
days’  lost  labor,  we  were  led  to  conclude  that  such  a  course 

*  Twenty-fifth  Annual  Report  Western,  1860. 

f  Twenty-sixth  Annual  Report  Western,  1861. 


14 


was  impracticable  within  the  time  at  our  disposal,  or,  if  other¬ 
wise,  would  still  expose  us  to  imputations  of  unfairness ;  and 
we  accordingly  allow  the  parties  to  be  heard  in  turn.  Fortu¬ 
nately,  as  will  soon  be  seen,  this  change  of  plan  involves  very 
little  repetition.  With  this  explanation,  we  pass  to  the 
Reports  and  papers  submitted  to  us  by  the  Boston  and 
Worcester. 

The  first  arrangement  was  made  in  1840,  when  we  find 
the  through  freight  charged  at  rates  lower  than  the  local,  for 
the  reason,  that  goods  once  loaded  in  the  cars,  and  carried 
to  the  summit  level  of  the  line,  a  distance  of  sixty  or  seventy 
miles,  might  be  carried  to  the  termination  of  the  line,  at  as 
little  cost,  as  to  any  of  the  intervening  stations.  This  rule 
seems  to  have  been  agreed  to  without  difficulty  ;  and  has 
existed  ever  since. 

In  1842,  a  reduction  was  reluctantly  made  in  the  rate  of 
transporting  freight,  at  the  earnest  solicitation  of  the  Direc¬ 
tors  of  the  Western,  who  advocated  also  reduced  fare  to 
passengers.  The  tariff  then  adopted  for  the  joint,  was  lower 
than  that  of  the  Boston  and  Worcester  on  its  own,  business ; 
and  the  reasons  for  yielding  to  the  Western,  are  stated  at  some 
length  in  two  Annual  Reports.*  In  fixing  a  rule  for  dividing 
the  freight-money,  there  seems  to  have  been  no  difference  of 
opinion  ;  each  assenting  to  allow  the  other  twenty  cents  per 
ton,  for  receiving,  storing,  loading,  and  forwarding,  goods — 
clerical  expenses  included — and  a  like  sum  per  ton,  for 
unloading,  delivering,  storing,  and  collecting  freight-bills ; 
and  this  compensation  made,  a  division  of  the  balance  pro 
rata,  or  in  exact  proportion  to  the  distance  carried  by  each 
Road. 


♦Eleventh  and  Twelfth,  years  1842  and  1843. 


15 


We  come  next  to  the  beginning  of  the  present  controversy. 
In  addition  to  the  continued  discussions  between  the  two 
Boards  as  concerned  the  rates  of  fare  and  freight,  the  West¬ 
ern,  in  December,  1843,*  proposed  a  new  rule  for  dividing 
both  passenger  and  freight  receipts  of  the  joint  business, 
which  the  Boston  and  Worcester  deemed  entirely  inconsistent 
with  the  relative  rights  of  the  two  Corporations,  and  especi¬ 
ally  with  its  own,  in  law  and  equity,  and  which,  of  conse¬ 
quence,  after  a  careful  examination,  was  declined.  The 
Western  appealed  to  the  Legislature,  and  the  parties  appeared 
in  due  time  before  a  Committee  of  that  body,  the  one  to 
urge,  the  other  to  oppose,  interposition.  Proceedings, 
however,  were  suspended  ;  and  by  agreement  of  the  Directors 
of  the  two  Corporations,  the  matter  in  dispute  was  referred 
to  three  distinguished  legal  gentlemen,!  with  power  to  make 
an  Award  for  the  year  1844,  and  until  three  months’  notice 
by  either  party  of  dissatisfaction  therewith.  At  the  hearing 
before  the  Referees,  the  counsel  of  the  Boston  and  W orcester 
put  in  a  paper,!  in  which  they  denied  the  right  of  the 
Legislature,  and  consequently  of  the  Referees  themselves,  to 
establish  the  rates  which  should  be  paid  for  the  use  of  that 
Road  by  the  Western ;  but  nevertheless,  for  certain  consid¬ 
erations  therein  recited,  they  waived  the  objections  raised, 
and  consented  to  proceed  and  finish  the  case.  The  Award, 
which  was  made  May  21,  1844,  was  very  unsatisfactory  to 
the  Directors  of  the  Boston  and  Worcester,  both  in  its  general 
principles,  and  in  the  rule  of  division  it  established.  On 
flour,  that  Road  was  to  receive  one-fourtli  of  the  existing 
tariff  from  Albany  to  Boston,  or  nine  cents  the  barrel  on 

*  Thirteenth  Annual  Report  Boston  and  Worcester,  year  1844. 

f  Linus  Child,  John  M.  Williams  and  Charles  H.  Warren. 

X  Daniel  Webster,  and  Benjamin  R.  Curtis. 


16 


“  through,”  and  pro  rata  on  “  way,”  with  the  same  proper 
tion  on  any  addition  to  the  rate  ;  while,  on  all  other 
merchandise  the  Western  was  to  pay  it  two  and  seven-eighths 
cents  per  ton  for  each  mile  carried,  with  a  comparative 
increase  on  a  higher  tariff,  but  without  allowance  for  loading, 
unloading,  and  other  expenses,  as  under  the  arrangement  in 
1842.  In  the  matter  of  joint  passengers,  the  Award  provided 
that  the  Western  should  allow  two  and  a  half  cents  per  mile 
on  first  class,  and  two-thirds  of  that  sum  on  second  class ; 
but  yet,  in  case  the  Boston  and  Worcester  should  thereafter 
transport  either  class  at  rates  lower  than  these,  it  should 
make  a  corresponding  reduction  to  the  Western.  The  fare 
on  the  latter,  was  already  higher  than  on  the  parent  Road, 
yet,  by  this  division  of  joint  passenger  receipts,  the  average 
rate  of  compensation  per  mile,  on  first  class,  was  fixed  at 
fifty  per  cent,  less  to  the  Boston  and  Worcester  than  to  the 
Western,  for  the  last  named,  was  actually  to  be  paid  from 
the  earnings  of  the  other,  thirty-eight  cents,  on  first  class, 
for  each  person  transported.  It  is  to  be  said,  however,  that 
the  Boston  and  Worcester  had  previously  (except  for  a  short 
period),  and  voluntarily  conceded  about  two-thirds  of  this 
disproportion,  not,  as  the  Directors  averred  at  the  time,  that 
the  Western  could  of  right  claim  such  or  any  other  conces¬ 
sion,  “  but  on  the  ground,  that  from  the  relative  situation 
and  circumstances  of  the  two  Roads,  the  oldest  might  be 
justly  required  to  carry  the  joint  passengers  at  a  lower  rate 
per  mile  than  the  youngest.*  The  Directors  say  further, 
that  “  The  result  of  our  exertions  for  the  accommodation  of 
the  freight  business  of  the  Western  Road  under  this  Award 
is,  that  with  an  increased  capital  of  more  than  a  million  of 

*  Thirteenth  Annual  Report  Boston  and  "Worcester,  year  1844. 


17 


dollars,  a  great  part  of  which  was  demanded  chiefly  for  the 
accommodations  of  the  Western  freight,  the  earnings  of  our 
local  freight  are  reduced  by  the  amount  of  $43,000  ;  and 
while  our  whole  freight  is  increased  to  the  immense  amount 
of  ninety  thousand  tons,  we  are  required  to  transport  the 
whole  increase,  for  a  compensation  less  than  the  actual  cost.” 

In  January,  1845,  the  Boston  and  Worcester  gave  notice 
of  intention  to  terminate  the  Award  at  the  earliest  period  its 
conditions  would  allow ;  and  soon  after,  submitted  to  the 
Western  a  proposition  for  new  terms  of  agreement.  From 
this  paper,  we  extract  the  three  articles  pertinent  to  our 
purpose.  Thus, 

1.  Each  Corporation  shall  be  entitled  to  the  whole  income 
earned  upon  its  own  Road. 

2.  The  rates  of  fare  and  freight,  for  the  joint  business  of 
the  two  Roads,  shall  he  determined  by  mutual  agreement 
between  the  two  Boards  of  Directors. 

3.  In  determining  the  rates  of  fare  and  freight  for  the  joint 
business  of  the  two  Roads,  it  shall  be  first  ascertained  what 
difference  between  their  respective  rates  will  afford  to  each 
Corporation  an  equal  net  profit  per  mile,  on  each  passenger, 
and  each  ton  of  freight  transported  (over  the  whole  or  any 
part  of  both  Roads,)  taking  into  consideration  the  annual 
charges  and  the  annual  interest  on  the  cost  of  each,  with  its 
appurtenances,  and  averaging  these  on  the  whole  business  of 
the  respective  Roads.  The  rates  established  shall  be  such,  as 
with  a  just  allowance  for  this  difference  of  annual  expenses 
and  interest,  will  give  to  each  Road  an  equal  net  profit  per 
mile  on  each  passenger  of  the  same  class,  and  eacli  ton  of 
freight  of  the  same  class. 

The  Western  not  only  declined  this  overture,  but  peti¬ 
tioned  the  Legislature  for  authority  to  use  the  Boston  and 


3 


18 


Worcester,  at  a  compensation  to  be  fixed  by  law.  One  of  the 
results  was,  the  passage  of  an  Act  to  “  Regulate  the  use  of 
Railroads,”  under  a  provision  of  which,  the  Western  applied 
to  the  Supreme  Court  for  the  appointment  of  Commissioners 
to  determine  the  rates  it  should  pay  for  the  drawing  of  pas¬ 
sengers,  merchandise  and  cars  over  the  connecting  Road. 
The  two  Corporations,*  however,  while  this  application  was 
pending,  adjusted  all  matters  of  controversy  between  them  ; 
and  agreed  upon  terms  for  the  regulation  of  their  joint  busi¬ 
ness  for  a  period  of  three  years,  “  on  a  principle  which 
recognized  the  existence  of  equal  powers  and  rights  under 
their  respective  charters,”  and  by  a  rule  of  division  of  receipts, 
u  mutually  satisfactory.”  And  yet,  this  very  u  Contract  of 
1846,”  so  acceptable  at  the  moment,  introduced  disturbing 
elements  of  a  nature  so  grave,  as — in  our  judgment — to 
render  success  in  any  attempt  to  effect  entire  harmony,  well 
nigh  hopeless. 

We  quote  such  parts  of  this  famous  document  as  are  neces¬ 
sary  to  show  the  relations  between  the  two  Corporations 
sixteen  years  ago,  and  to  an  understanding  of  the  material 
points  at  issue  now  : — 

“  Article  1.  That  in  consideration  of  the  higher  relative  cost 
of  the  Western  Railroad,  as  well  as  the  expense  of  transportation 
upon  it,  in  proportion  to  the  amount  of  its  business,  it  is  agreed 
between  the  parties  aforesaid,  that  the  said  Western  Corporation 
shall  receive  a  larger  proportion  of  the  fare  from  joint  passengers, 
than  a  pro  rata  division  per  mile,  as  follows,  viz. : — 

“ Provided ,  the  said  Western  Railroad  shall  so  reduce  its  fare  on 
the  through  passengers,  that  the  rate  from  Boston  to  Albany  shall 
be  live  dollars,  the  full  proportion  of  which  for  the  forty-four  miles 


*  Keport  Boston  and  Worcester,  June  1,  184G. 


19 


of  the  Worcester  Road  would  be  one  dollar  and  ten  cents,  it  is 
agreed  that  ten  cents  shall  be  deducted  from  the  said  proportion, 
and  added  tc  the  proportion  of  the  Western  Road,  so  that  the  said 
Worcester  Company  shall  receive  one  dollar,  and  the  Western  Road 
four  dollars  of  the  said  through  fare,  and  the  mode  of  collecting  said 
through  fares,  as  well  as  the  joint  way  fares  shall  be  the  same  as 
has  been  practiced  heretofore,  by  the  sale  of  the  tickets  of  the  sev¬ 
eral  roads,  by  the  agents  of  each,  at  their  respective  local  rates,  and 
dividing  and  accounting  for  the  proceeds  in  the  manner  herein  pro¬ 
vided  for.  Second  class  passengers  are  to  be  charged  at  two-thirds 
the  rates  of  those  of  the  first  class,  the  proceeds  in  all  cases  to  be 
accounted  for  in  the  same  proportion. 

“  Article  2.  In  case  it  shall  become  necessary  or  expedient  for 
encouraging  the  through  travel,  to  establish  an  extra  through  train 
to  run  at  lower  rates  of  fare  than  those  above  stipulated  to  be  estab¬ 
lished  by  mutual  agreement,  the  parties  hereto  engage  to  consent  to 
the  same,  and  the  proceeds  of  the  fare  so  established  shall  be  divided 
on  the  same  principle  of  deducting  ten  cents  from  the  pro  rata  share 
of  the  Boston  and  Worcester  Road  and  adding  it  to  that  of  the 
Western.  Such  way  passengers  as  may  be  carried  in  the  said  extra 
train  shall  pay  the  regular  rates  of  fare,  unless  a  different  rate  shall 
be  established  by  mutual  consent. 

“Article  3.  The  Boston  and  Worcester  Corporation  agrees 
that  the  Western  Corporation  shall  be  permitted  to  charge  the  joint 
passengers  going  to  or  from  the  way  stations  on  their  road  at  a 
higher  rate  than  the  above,  but  not  exceeding  three  cents  a  mile, 
and  that  they  will  claim  on  this  account  no  more  than  one  dollar  for 
the  whole  length  of  their  road,  and  in  the  same  proportion  for  parts 
of  it. 

“  Article  9.  In  regard  to  the  income  derived  from  the  trans¬ 
portation  of  merchandise,  in  consideration  of  the  extraordinary 
expenses  represented  by  the  said  Western  Corporation  to  be  incurred 
by  them  in  hoisting  and  lowering  goods  between  the  railroad  and 
canal  boats  at  Greenbusli,  and  of  collecting  considerable  portions  of 


20 


the  freight  in  small  parcels  at  a  large  number  of  way  stations,  and 
of  other  stipulations  in  this  agreement,  the  Boston  and  'Worcester 
Corporation  agree  that  the  expenses  of  loading,  unloading,  clerk  hire 
and  other  depot  expenses  incurred  in  the  management  of  the  joint 
business  on  their  part  of  the  line,  shall  be  set  off  against  the  like 
expenses,  including  the  said  extraordinary  charges  incurred  by  the 
Western  Corporation  on  their  part  of  the  line,  and  the  gross  receipts 
of  income  shall  be  divided  between  the  said  Corporations  in  the  man¬ 
ner  specified  in  the  next  article  instead  of  the  said  expenses  of  load¬ 
ing,  unloading,  &e.,  being  made  a  charge  on  the  gross  receipts  before 
division,  as  has  been  claimed  by  the  Boston  and  Worcester  Corpo¬ 
ration  heretofore. 

“Article  10.  In  consideration  of  the  high  grades  on  a  part  of 
the  Western  Boad,  and  the  consequent  large  amount  of  locomotive 
power  required  in  passing  them,  and  also  of  the  greater  wear  and 
hazard  of  injury  to  the  cars,  it  is  further  agreed  that  the  receipts 
from  the  transportation  of  all  joint  merchandise  shall  be  divided 
between  the  two  Corporations  pro  rata,  according  to  the  number  of 
miles  which  each  parcel  is  transported,  with  this  exception,  that 
after  ascertaining  the  said  pro  rata  division,  there  shall  be  deducted 
from  the  proportion  of  the  Boston  and  Worcester  Corporation,  an 
amount  equal  to  twelve  cents  per  ton,  for  every  ton  transported  to 
or  from  places  west  of  Springfield,  and  the  said  amount  shall  be 
added  to  the  pro  rata  proportion  of  the  Western  Road. 

“Article  11.  It  is  agreed  that  either  party  may  make  special 
bargains  for  the  transportation  of  large  parcels  of  freight  at  rates 
varying  from  the  regular  rates  in  particular  cases,  on  terms  which 
they  may  think  advantageous  to  the  interest  of  the  two  Corpora¬ 
tions,  and  the  division  of  receipts  therefrom  shall  be  made  in  accord¬ 
ance  with  the  terms  above  indicated. 

“Article  12.  In  consideration  of  the  expenses  incurred  by  the 
Western  Corporation  in  supporting  a  ferry-boat  between  Grcenbush 
and  Albany,  the  Boston  and  Worcester  Corporation  agree  to  pay  the 


21 


Western  Corporation  two  thousand  dollars  per  annum  towards 
defraying  this  expense.” 

The  contract  of  1846  was  renewed  in  February,  1849,  at 
which  time  the  12th  Article  was  declared  “  null  and  void, 
without  substitute : ”  and  the  third  was  “to  be  so  altered  as 
to  read  that  the  joint  fare  between  Boston  and  Springfield 
shall  be  reduced  to  two  dollars  and  fifty  cents,  and  between 
Boston  and  Albany  shall  be  fixed  at  five  dollars,  and  that  the 
Western  Road  may  establish  such  joint  fare  as  they  may 
judge  expedient  for  passengers  going  to  or  from  way  stations 
west  of  Connecticut  River,  and  a  higher  rate  than  the  price 
between  Boston  and  Springfield,  according  to  distance,  for 
passengers  going  to  or  from  way  stations  east  of  Springfield, 
and  that  the  full  proportion  of  the  joint  fares  so  established 
going  to  the  Worcester  Corporation  shall  be  one  dollar  for 
the  whole  length  of  their  road,  and  in  the  same  proportion, 
according  to  distance,  for  parts  of  it.” 

These  were  the  only  changes  in  the  articles  above  cited. 
In  November,  1853,  there  was  a  second  renewal,  with  the 
modifications  of  the  seven  articles,  that  “  the  ninth  and  tenth 
articles  of  the  contract  of  1846,  and  continued  without  alter¬ 
ation  in  the  contract  of  1849,  shall  be  expunged,  and  instead 
thereof  the  following  rule  of  division  shall  be  substituted, 
viz.:  —  The  joint  receipts  for  the  transportation  of  freight 
shall  be  divided  between  the  respective  Corporations,  accord¬ 
ing  to  the  distance  carried,  without  allowance  to  either 
Company  for  depot  charges.” 

The  last  arrangement  was  to  continue  in  force  until  June 
1,  1856,  “and  until  six  months’  notice,  in  writing,  be  given 
by  either  party  to  terminate  it,  after  that  date.”  Such,  then, 
were  the  rules  which  regulated  the  joint  business  of  the  two 


22 


Corporations,  for  more  than  ten  years ;  but,  in  November, 
1855,  both  moved  to  put  an  end  to  them.  Yet,  to  allow  the 
President  of  the  Boston  and  Worcester*  —  the  late  Hon. 
Thomas  Hopkinson — to  go  abroad  with  a  view  to  the  resto¬ 
ration  of  his  health,  the  repudiated  mode  of  division  was 
provisionally  continued  from  June  to  December,  185G.  The 
two  Boards  failing  to  adjust  their  differences  of  opinion,  in 
several  conferences  held  for  the  purpose,  the  Boston  and 
Worcester  proposed  “  to  submit  the  matter  of  an  equitable 
division  of  the  joint  receipts  to  intelligent,  fair  and  impartial 
men,  to  be  mutually  agreed  upon  by  the  parties.”  This,  the 
Western  declined.  A  second  offer  to  appear  before  referees 

followed,  and  was  also  declined.  Still  again,  a  proposal  was 

\  , 

made  to  refer  to  gentlemen  of  the  two  Boards,  of  whom  the 
Western  was  to  have  a  majority.  To  this,  the  last  mentioned 
Road  refused  assent ;  nor  did  it  accept  the  overture  to  join 
in  application  to  the  Supreme  Court  for  an  adjustment  under 
the  laws  of  the  Commonwealth.  At  last,  however,  both 
petitioned  the  Court,  separately :  the  Western,  for  Commis¬ 
sioners  “  to  fix  the  rate  at  which  passengers  and  freight 
should  be  carried,  and  depot  accommodations  furnished;” 
and  the  Boston  and  Worcester,  for  Commissioners  “to  deter¬ 
mine  these  and  all  other  questions  at  issue.”  On  the  2d  of 
November,  the  Court,  with  the  consent  of  the  parties,  desig¬ 
nated  three  gentlemen,!  who  made  an  Award,  which  was 
opened  and  filed  on  the  24th  of  March,  1858,  which  the 
Boston  and  Worcester  moved  the  Court  to  affirm  and  accept, 
but  which,  the  Western  moved  to  wholly  set  aside,  or  to 
recommit  for  revision  and  correction.  The  case  was  argued 
and  decided  at  the  law  term  of  the  Supreme  Court,  Novcm- 

*  Twenty-eighth  Annual  Report  Boston  and  Worcester,  November,  1857. 

f  John  W.  Brooks,  Isaac  Hinckley,  and  Waldo  Iligginson. 


23 


ber,  1859,  and  the  judgment  of  the  Commissioners  sustained 
in  an  elaborate  opinion,  save  as  relates  to  the  rights,  duties 
and  obligations  of  the  parties  anterior  to  the  beginning  of 
proceedings,  not  embraced  in  the  submission.* 

This  Award — to  state  the  result  in  a  word — gave  the  West¬ 
ern  an  excess  over  pro  rata,  on  every  class  of  freight,  at 
thirty  of  the  thirty-five  stations  between  Worcester  and 
Albany ;  and  an  excess  over  pro  rata  at  all  of  them,  on  first 
class  passengers,  and  at  thirty-one  of  them,  on  second  class. 
Or,  inversely,  the  Boston  and  Worcester  was  allowed  more 
than  a  pro  rata  share  of  the  joint  receipts  at  five  places,  on 
freight,  and  at  four  places  on  second  class  passengers,  f 
On  the  19th  of  February,  1860,  an  order  was  adopted  in 
the  General  Court,  at  the  instance  of  the  Western,  to  inquire 
into  the  “  expediency  of  further  legislation  in  relation  to  the 
powers  of  Commissioners,  appointed  under  the  laws  relating 
to  connecting  railroads :  ”  and,  a  few  days  after,  that  Corpo¬ 
ration  applied  to  the  Supreme  Court  for  a  second  Commission 
to  consider  its  differences  with  the  Boston  and  Worcester. 
As  concerns  the  order,  a  hearing  was  had  before  the  Com¬ 
mittee  on  Railways  and  Canals,  at  which  the  gentlemen  who 
made  the  Award  in  March,  1858,  and  the  Presidents  of  the 
two  Roads,  were  present.  Mr.  Brooks  gave  a  minute  account 
of  the  course  pursued  by  himself  and  his  fellow  Commission¬ 
ers,  with  “  a  perfect  exposition  of  the  facts  proved  before  them, 
and  of  the  careful  consideration  they  gave  to  every  matter 
affecting  the  joint  business,” J  and  interests  of  the  parties; 
and  made  such  answers  to  questions  put  to  him  as  to  show, 
“  that  he  was  a  perfect  master  of  the  whole  subject,  and  was 

*  Thirtieth  Annual  Report  Boston  and  Worcester,  1859. 

f  Tables  and  Minority  Report  Committee  on  Railways  and  Canals,  18G0. 

%  Minority  Report  of  the  Committee  on  Railways  and  Canals,  18G0. 


24 


entirely  familiar  with  every  fact,  circumstance  and  principle 
touching  the  points  of  the  case.’’  And  he  “assured  the 
Committee  that  he  and  his  associates  had  spared  no  pains  to 
make  a  just  Award,  and  all  his  reflections  since  had  confirmed 
him  in  the  opinion  that  their  decision  was  correct  and  right.” 
Messrs.  Higginson  and  Hinckley,  on  being  called,  stated  that 
thev  had  heard  Mr.  Brooks  with  care,  that  “  thev  fully  con- 
curred  with  him  in  all  that  he  had  testified  and  said,  and 
that  they  had  nothing  further  to  add  by  way  of  explanation 
or  qualification.”* 

“  After  this  testimony  of  the  Commissioners  had  been 
given,  the  President  of  the  Western  Railroad  proceeded  to 
state  his  objections  to  said  Award,  and  presented  an  array  of 
figures  and  statistics  which  he  explained  with  much  fulness. 
His  statements  and  testimony  were  given  at  much  length. 
His  object  was  to  show  that  the  joint  receipts  should  be 
divided,  or  rather  that  each  party  should  receive  a  certain 
reasonable  compensation  for  its  share  of  labor  in  carrying  on 
and  transacting  the  joint  business,  according  to  a  certain 
fixed  rule  to  be  prescribed  by  the  Legislature. 

“The  President  of  the  Worcester  Company  then  gave  his 
testimony  and  proceeded  to  make  a  statement  at  somewhat 
greater  length  than  the  gentleman  who  preceded  him.  He 
also  presented  a  mass  of  facts  and  of  figures  and  statistics 
on  his  part.  His  object  was  to  show  that  said  Award  was 
not  only  not  unjust  to  the  Western  Road,  but  was  more 
favorable  to  that  Corporation  than  it  ought  to  have  been,  and 
also  to  prove  that  it  would  be  fatal  to  the  best  interests  of 
both  said  two  great  roads  to  have  such  an  unbending  and 
fixed  rule  adopted  as  was  proposed. 


*  Minority  Report  of  the  Committee  on  Railways  and  Canals,  1800. 


<c  He  insisted  that  the  great  purpose  of  the  Legislature  had 
been  to  secure  the  appointment  of  able,  experienced  and 
practical  men  for  Commissioners,  and  then  to  leave  it  to  such 
men  as  Commissioners  to  prescribe  such  a  rule  for  the 
division  of  the  joint  receipts  as  would  be  applicable  to  the 
character  of  the  roads  and  the  relations  of  the  parties  before 
them,  and  would  secure  such  a  division  as  would  be  just  and 
reasonable  between  the  parties.”* 

The  Committee  reported  a  bill,  which,  after  discussion, 
passed  the  House  by  a  considerable  majority,  but  which  the 
Senate  referred  to  the  next  General  Court.  This  bill 
provided  that  Commissioners  appointed  under  existing  laws, 
to  determine  the  relations  between  connecting  roads,  should 
fix  one  rate  of  compensation  for  carrying  freight  and 
passengers,  without  regard  to  the  points,  on  the  paying  road, 
where  either  were  received  or  delivered.  This  provision 
was  strenuously  opposed  by  the  Boston  and  Worcester, 
but  by  the  Western  it  was  deemed  merely  declaratory.! 

With  the  mention  now,  of  three  contracts  between  the  two 
Corporations,  we  conclude  this  part  of  our  Report.  The 
first  is  dated  August  23,  1860,  and  provides  for  the  adjust¬ 
ment  of  accounts  from  June  1,  1856,  to  December  1,  1860, 
as  follows : — for  two  and  one  quarter  years,  according  to  the 
contract  of  November  1,  1853,  as  interpreted  by  F.  B. 
Crowninsliield,  Esq.,  President  of  the  Boston  and  Lowell 
Railroad,  acting  as  Referee  ;!  and  for  the  remaining  and  like 

*  Minority  Report  of  Committee  on  Railways  and  Canals,  March  27,  1SG0. 
f  Twenty-sixth  Annual  Report  Western,  1S61 ;  and  “Communication” 
of  Boston  and  Worcester,  1860. 

X  We  do  not  find  the  Award  of  Mr.  Crowninsliield  among  the  papers  put 
in  by  either  party.  The  Directors  of  the  Boston  and  AVorcester  in  their 
31st  Annual  Report,  November,  1860,  remark  that,  his  “  construction  of 
the  contract  of  1853,  was  that  it  provided  for  a  division  pro  rata  per  ton 
per  mile,  as  claimed  by  us.” 

4 


26 


period,  in  accordance  with  the  Award  of  Messrs.  Brooks. 
Hinckley,  and  Higginson.  The  second,  executed  Xoveml*er 
27. 1860,  states  the  claims  of  each  party  with  brevity,  recites 
that,  “  in  a  spirit  of  compromise,  and  to  avoid  if  possible 
the  vexations  and  expense  of  an  appeal  for  judicial  or 
legislative  interference,”  and,  “with  the  distinct  under¬ 
standing  that  in  future  differences  that  mav  arise  between 
the  two  Roads,  neither  one  of  them  shall  make  use  of  the 
concessions  now  made  to  the  prejudice  of  the  other;”  and 
provides  that,  for  the  six  months  immediately  following 
November  80.  1860,  accounts  shall  be  settled  monthly, 
according  to  the  Award  of  Messrs.  Brooks,  Hinckley,  and 
Higginson,  and  that  the  Boston  and  Worcester  shall  pay  the 
Western,  the  sum  of  one  thousand  dollars  at  each  and  every 
such  settlement.  The  last — dated  May  30,  1861 — makes 
pertinent  reference  to  the  disturbed  condition  of  the  country 
and  the  necessity  of  unity  of  action;  again  deprecates  an 
appeal  to  public  tribunals,  again  guards  against  prejudice  to 
either  Road  in  consequence  of  repeating  the  “  concessions  ”  ; 
and  stipulates  first,  for  the  continuance  of  the  joint  business 
for  one  year — to  May  31, 1862 — under  the  terms  of  certain 
enumerated  sections  of  the  Brooks.  Hinckley,  and  Higginson 
Award,  and  second,  for  a  subsidy*  to  the  Western  by  the 
Boston  and  Worcester,  of  twelve  thousand  dollars,  in  equal 
monthly  payments.! 

Such  is  the  mere  outline  of  this  controversy ;  such,  the 
past  efforts  to  reconcile  the  conflicting  opinions  of  able  and 
honorable  men ;  such  the  endeavors  to  devise  measures  to 
hold  two  large,  highly  useful,  and  prosperous  Corporations 
in  amity.  As  merchants  and  sufferers,  as  the  representatives 

*  Subsidy  is  the  Boston  and  Worcester’s  own  word. 

t  Reports  Boston  and  Worcester,  l*+JO  and  1061,  “Communication,"  lo6U. 


27 


of  merchants  and 'sufferers,  we  cannot,  but  express  the  hope 
— the  earnest  hope — that  there  will  be  no  more  appeals  to 
Referees  or  to  Commissioners,  but  union,  early,  perpetual 
UNION,  ON  TERMS  OF  EXACT  JUSTICE. 

“  By  this  marriage , 

All  little  jealousies,  which  now  seem  great , 

And  all  great  fears ,  which  now  import  their  dangers , 

Would  then  be  nothing ;  truths  would  be  tales , 

Where  now  half  tales  be  truths” 

******  u  parc[on  what  I  have  spoke  ; 

For  His  a  studied ,  not  a  present  thought ; 

By  duty  ruminated  ” 

Thus  far,  we  have  spoken  in  general  terms  ;  to  under¬ 
stand  the  case  thoroughly,  however,  particular  facts  and 
exact  figures  are  indispensable,  and  these  we  now  proceed  to 
record. 

Our  duty  in  this  relation  has  caused  us  no  little  anxiety, 
for,  on  the  one  hand,  we  are  expected  to  make  a  brief 
Report,  and  on  the  other,  such  a  digest  of  all  the  points  of 
difference,  as  shall  show  unconditional  impartiality.  After 
much  reflection,  we  conclude  to  insert  such  parts  of  the 
documents  put  in  at  the  hearing  before  us,  as  are  directly 
pertinent  to  the  issue,  without  a  word  of  comment. 
First  as  to  costs  and  grades.  The  Western  avers  that, 
“  in  the  early  history  of  this  Corporation  there  was  much 
negotiation  with  the  Boston  and  Worcester  Railroad  Corpo¬ 
ration  in  relation  to  the  manner  of  doing  the  joint  business, 
and  of  the  proportion  that  should  be  received  by  each. 
This  negotiation  resulted  in  a  contract  based  upon  the 
principle  of  giving  to  the  Western,  in  consideration  of  its 
higher  grades,  and  higher  relative  cost,  a  higher  rate  of 


28 


fares  and  freights,  than  was  given  to  the  Boston  and 
Worcester  Railroad  Corporation.  This  contract  underwent 
various  renewals  and  modifications,  hut  the  principle 
remained  the  same.”* 

The  Boston  and  Worcester  replies,  that  u  if  its  cost  was 
then  relatively  higher,  so  as  to  entitle  that  Corporation  to  a 
higher  rate,  that  consideration  is  clearly  now  in  favor  of  this 
Corporation,  for  by  the  reports  of  the  two  Corporations  to 
the  Legislature,  it  appears  that  the  cost  of  the  Boston  and 
Worcester  main  road  per  mile,  including  buildings,  was 
$82,068,  while  the  cost  of  the  Western  Railroad  per  mile, 
including  buildings,  was  $38,618. 

“  As  to  higher  relative  grades — the  maximum  grade  of  the 
Western  Railroad  is  83  feet  for  1J  miles ;  that  of  the  Boston 
and  Worcester  37  feet  for  1,100  feet ;  but  the  total  rise  and 
fall  in  the  Western  Railroad,  as  it  is  stated  in  their  report,  is 
2,085  feet,  making  an  average  rise  and  fall  per  mile  of  13^ 
feet ;  while  the  total  rise  and  fall  in  the  Boston  and  Worces¬ 
ter  Railroad  is  714  feet,  making  an  average  rise  and  fall  per 
mile  of  16  ^  feet.”f 

Second,  as  to  the  division  of  the  receipts  from  the  joint 
business.  The  Western  declares  that  the  framers  of  the 
“  Contract  of  1846,”  designed  to  divide  such  receipts  “  by  a 
single  rule  between  the  respective  Corporations  pro  rata, 
according  to  the  distance  carried,  and  not  that  they 
intended  to  divide  the  receipts  for  each  ton  of  freight  pro 
rata  per  mile  to  each  station,  by  a  rule  that  never  lias  and 
never  can  fail  to  give  the  Boston  and  Worcester  Corporation 
from  fifteen  to  twenty-five  per  cent,  higher  rate  .than  it  gives 
the  Western.  The  contracts  referred  to,  each  and  all  of 

*  Twenty-third  Annual  Keport  Western,  January,  1858. 
f  Twenty-ninth  Annual  Keport  Boston  ami  Worcester,  November,  1858. 


29 


them  declared  that  in  consideration  of  higher  grades,  <fcc., 
<fcc.,  the  Western  shall  be  entitled  to  higher  rates  of  fare  and 
freights  than  the  Boston  and  Worcester,  and  we  say, 
that  neither  the  gentlemen  signing  those  contracts  for  the 
Western  Koad,  or  the  Boston  and  Worcester  Road,  intended 
to  adopt  or  perpetuate  a  rule  for  dividing  freight  receipts 
between  these  two  Corporations,  that  would  give  to  either 
party  a  rate  25  per  cent,  greater  than  it  gave  to  the  other. 
Yet  this  is,  as  we  have  shown,  the  operation  of  the  rule 
under  which  we  have  been  compelled  to  work,  until  we  have 
already  contributed  from  our  fair  proportion  of  the  income, 
more  than  a  quarter  of  a  million  dollars  for  their  benefit,  a 
large  proportion  of  which  should  not  have  been  taken  from 
the  freighter.  This  drain  has  been  steady,  but  not  exactly 
uniform  in  its  operation,  is  c  uncertain,’  sometimes  giving 
12  or  20  per  cent.,  and  sometimes  not  less  than  30  per 
cent,  when  carried  out  to  its  fullest  extent  to  one  party 
more  than  to  the  other.” 

•4'.  .'1'  \lr_  vV, 

/f»  /jv  vjv  vjv  vr*  'Ts  7Jv 

“  The  parcel  and  station  division  only  partially  applied, 

produced  the  following  results  for  the  year  ending  Novem¬ 
ber  30,  1859  •  Of  the  whole  amount  of  freight  received  and 
delivered  by  the  Western  Road  at  Worcester,  amounting  to 
165,634  tons,  159,769  tons  was  through  freight  to  and  from 
Boston  and  Brighton,  and  only  5,865  tons  was  freight  to 
and  from  the  way  stations  of  the  Worcester  Road,  excluding 
Brighton,  and  of  this  whole  amount  only  101,209  tons  was 
through  freight  to  the  Western,  and  this  whole  freight  was 
carried  on  an  average,  43  miles  by  the  Worcester,  or  98  per 
cent,  of  the  whole  length  of  their  road,  and  only  117  miles 
by  the  Western,  (over  a  road  156  miles  long,)  or  75  per 
cent,  of  its  whole  length.  The  gross  amount  received  by 


30 


both  Corporations  for  transporting  tins  freight,  was  $647,- 
744.59,  and  averaged  for  each  ton  carried  one  mile,  2j405^ 
cents,  while  of  this  the  Worcester  received  cents,  and 
the  Western  but  cents  for  each  ton  carried  one  mile, 
thus  yielding  to  the  Worcester  a  rate  22  J  per  cent,  more 
than  to  the  Western.  The  gross  receipts  for  joint  freight  for 
1860  have  been  $727,549.22,  and  the  average  for  each  ton 
per  mile  was  2t3q4^  cents,  and  the  Worcester  received  for 
their  share  an  average  of  cents,  while  the  Western 
received  but  2 T2^-  cents,  yielding  to  the  Worcester  a  rate  18 
per  cent,  higher  than  to  the  Western.”* 

To  this  rule — “  tons  one  mile  ” — the  Boston  and  Worces¬ 
ter  answers :  u  It  is  too  manifest  to  require  any  argument, 
that  when  the  two  roads  have  carried  20,000  tons  of  freight  to 
Springfield,  44  miles  on  the  Boston  and  Worcester,  and  54  on 
the  Western,  the  latter  is  not  entitled  to  receive  any  more  of 
the  receipts  from  this  20,000  tons,  because  that  Corporation 
owns  102  miles  of  road  in  addition.  Stated  in  that  way,  the 
claim  is  simply  preposterous.  Yet  that,  and  that  exactly, 
is  the  claim  made  by  the  Western  Road,  and  a  rule  of 
division  which  involves  this  absurdity,  is  urged  continually 
as  an  equitable  test,  with  an  amazing  confidence.  We  have 
said  that  it  is  based  on  an  obvious  fiction.  As  an  appro¬ 
priate  representation  of  the  amount  of  work  done  by  a 
single  Corporation,  the  ‘  movement,’  reduced  to  tons  carried 
one  mile,  may  be  a  useful  item  of  statistical  information, 
but  conclusions  based  upon  it  as  a  single  uniform  represen¬ 
tation  of  a  thousand  varying  conditions  of  labor,  cost,  and 
profit  must  be  totally  erroneous.  It  might  as  well  be 
claimed,  that  it  requires  the  same  military  skill  to  lead  an 


♦Twenty-fifth  Annual  Report  Western,  18G0. 


31 


army  of  1,000  men  100  miles,  as  an  army  of  10,000  men  10 
miles ;  imagine  a  coal  merchant  who  has  sent  100  tons 
of  coal  54  miles  from  Worcester  to  Springfield,  receiving  a 
bill  from  the  President  of  the  Western  Railroad  for  5,400 
tons  of  coal  carried  one  mile  ! 

“  But  no  man  requires  argument  to  satisfy  him  that  the 
labor  and  expense  of  carrying  100  tons  ten  miles,  1,000  tons 
one  mile,  200  tons  five  miles,  333J  tons  three  miles,  must  be 
entirely  different,  and  that  different  parties  cannot  claim  the 
same  compensation  or  the  same  share  for  one  as  for  the 
other. 

u  Again,  it  is  a  familiar  fact,  upon  which  the  president 
of  tlie  Western  Road  lays  great  stress,  that  all  long  freights 
must  and  can  be  carried  for  less  per  mile  than  short  freights. 
The  longer  the  road,  therefore,  the  greater  proportion 
of  freight  can,  with  a  fair  profit,  be  carried  at  low  rates. 
When  a  long  road  and  a  short  road  act  together,  and  freight 
goes  over  the  whole  of  the  short  road  and  part  or  the 
whole  of  the  long  road,  has  the  long  road  any  right  to  say, 
in  substance,  to  the  short  road — 4  By  the  invariable  laws 
of  trade  and  business,  we  must  both  of  us  take  long  freights 
at  less  per  mile  than  short  freights  ?  Here  is  a  ton  of  freight 
that  passes  44  miles  over  your  road  and  20  miles  over  ours, 
and  the  freighter  pays  two  cents  per  ton  per  mile  for  it. 
Here  is  another  ton  that  goes  44  miles  over  your  road  and 
100  over  ours,  and  we  cannot  make  him  pay  but  one  cent 
per  ton  per  mile.’  Instead  of  each  taking  its  share  of  the 
two  sums,  that  is,  two  cents  and  one  cent  per  mile  respec¬ 
tively  on  each  class  of  freight,  they  must  be  aggregated 
together  by  this  process.”* 


*  Communication  Directors  to  Stockholders,  Boston  and  Worcester,  18G0. 


We  omit  the  calculation  which  follows,  but  quote  the 
words  used  to  state  the  result : 

But  to  the  Boston  and  Worcester,  88  tons  one  mile  at 
liVW  cents,  is  $1.15. 

“  And  to  the  Western  Road,  120  tons  one  mile  at  lyVVo 
cents,  is  $1.57. 

“  This  shows  why  the  rule  is  urged,  not  why  it  should  be 
adopted.” 

Again,  the  first  named  opposes  the  “  tons  one  mile  ”  rule 
for  the  reason  that  it  gives  that  Road  less  “  on  a  hundred 
tons  of  freight  to  Clappville  because  it  also  carries  another 
hundred  tons  over  a  hundred  miles  further,  is  as  absurd  as 
it  is  unjust.” 

Again  omitting  the  table  which  succeeds,  we  state  the  con¬ 
clusion  :  “  So  that  the  Boston  and  Worcester  Railroad 

would  receive  for  one  hundred  tons  to  Clappville,  considered 
by  itself,  upon  a  division  by  the  rule  urged  as  just  by  the 
Western  Road,  $264.  But  if  it  carries  another  100  tons  the 
same  distance,  and  then  divides  the  receipts  from  both  by  the 
same  rule,  it  receives  only  $261.97,  and  so  carries  this  second 
one  hundred  tons  for  actually  less  than  nothing,  and  receives 
less  money  because  it  has  done  twice  as  much  work,  that  the 
Western  Road  may  gain  over  30  per  cent,  on  its  own  earn¬ 
ings  out  of  those  of  this  Corporation.  Such  a  result  as  this 
must  drive  the  Worcester  Road  to  discourage  one  class  of 
freights  at  the  expense  of  the  other.” 

Yet,  the  Western  insist  that  the  “  tons  one  mile  ”  rule  is 
sustained  by  the  highest  mathematical  authority.  In  March, 
1859,  that  Corporation  submitted  to  Benjamin  Peirce,  Perkins 
Professor  of  Astronomy  and  Mathematics  in  Harvard  College, 
the  two  modes  of  division  thus : 

“  First,  by  the  Boston  and  Worcester  Railroad,  that  each 
parcel  or  Ion  of  freight  to  each  station  on  the  Western  Rail- 


33 


road  should  he  divided  separately ,  and  the  quota  of  the 
Boston  and  Worcester  Railroad  determined  thereby,  and 
vice  versa. 

“  Second,  by  the  Western  Railroad,  that  the  entire  receipts 
of  the  joint  busyness  should  be  divided  in  the  proportion  in 
which  each  Company  has  performed  the  work ,  i.  e.,  that  the 
share  of  each  should  be  determined  by  the  number  of  tons 
carried  one  mile  by  each  Corporation. 

u  There  being  various  prices  for  the  several  classes  of 
freight  to  all  the  stations,  and  various  prices  according  to  the 
distance  to  which  the  same  is  transported,  the  share  of  the 
entire  receipts  from  the  joint  business  must  vary,  for  or 
against  one  or  the  other  Corporation,  as  one  or  the  other  rule 
or  principle  of  division  shall  be  adopted.” 

On  the  first  of  May,  1860,  the  learned  Professor  said  that, 
“  according  to  the  principle  of  division  claimed  by  the  Wor¬ 
cester  Railroad,  viz. :  that  the  receipts  from  each  package 
shall  be  divided  independently  of  all  other  packages  accord¬ 
ing  to  its  own  rate,”  *  *  *  *  *  u  the  Western 

Railroad  receives  for  every  thousand  tons  carried  a  mile 
$17-j9q8q,  and  the  Worcester  Railroad  for  the  same  service 


“  For  the  same  service,  then,  the  Worcester  Railroad 
receives  $4^^  more  than  the  Western  Railroad,  or  twenty- 
four  per  cent,  more ;  and  reciprocally,  for  every  hundred 
dollars  thus  paid  to  the  Worcester  Railroad  it  carries 
4,486^2q  tons  a  mile,  while  for  the  same  money,  the  Western 
Railroad  carries  5,56 tons  a  mile,  which  is  l,O86T304^ 
tons  more  than  that  carried  by  the  Worcester  Railroad  for 
the  same  money. 

“  It  is  apparent  then  that  the  carriage  of  this  joint  freight 
is  most  unequally  profitable  to  the  two  roads  upon  this  prin- 


5 


34 


ciple  of  division,  and  that  it  is  worth  24  per  cent,  more  to  the 
Worcester  than  to  the  Western  Railroad. 

“  It  is  quite  possible,  indeed,  that  this  work  may  be  profit¬ 
able  to  the  Worcester  Railroad,  while  it  is  of  insignificant 
value,  or  even  a  loss  to  the  Western  Railroad  ;  if  the  profits 
which  accrue  from  it  to  the  Western  Railroad  are  just,  those 
derived  by  the  Worcester  Railroad  must  be  excessive.  I 
cannot  understand  how  such  an  unequal  compensation  of 
services  can  be  consistent  with  the  public  interests. 

“  If  the  principle  of  division  claimed  by  the  Western  Rail¬ 
road  be  adopted,  the  receipts  from  the  joint  freight  must  be 
divided  exactly  in  proportion  to  the  work  performed  by  each 
Corporation ;  this  gives,  in  the  division  of  the  receipts  from 
the  October  freight, — 

To  the  Western  Railroad,  .  .  .  855,850Tyo 

To  the  Worcester  Railroad,  .  .  18,193^^ 

Which  differs  in  each  case,  .  .  3,103T6^ 

from  the  results  of  the  previous  division ;  the  rate  of  com¬ 
pensation  is  here  the  same  for  both  roads,  being  819-^^  on 
every  thousand  tons  carried  a  mile.’'* 

In  making  these,  and  the  extracts  which  precede,  we  have 
held  the  scales  of  justice  even.  Still,  the  zeal  of  the  two 
Presidents  and  of  the  Solicitors  of  the  two  Corporations,  even 
upon  collateral  questions,  and  the  constant  apprehension 
which  they  seemed  to  manifest  lest  something  would  be 
omitted  which  we  ought  to  hear  and  carefully  weigh,  induces 
us — with  other  reasons — to  include  notice  of  the  principal 
tables  which  were  submitted  to  us  at  the  hearing.  To  these 
four  gentlemen,  we  accord — in  all  sincerity,  great  ability, 
and,  as  representatives,  unwearied  diligence  and  extraordi- 


*  Twenty-sixth  Annual  Report  Western,  1801. 


35 


nary  faithfulness  to  duty.  If  we  now  give  the  material  parts 
of  the  statistical  evidence  which  they  specially  prepared — 
with  amazing  labor — we  shall  complete  our  task  in  this 
behalf,  and  stand  acquitted  of  partial  representations.  First, 
then,  the  Solicitor  of  the  Boston  and  Worcester  offered  and 
explained,  sixteen  tables  of  Advance  Charges  at  Albany  on 
Boston  and  Brighton  Freights,  and  amounts  paid  by  that 
Road  to  the  Western,  for  the  same  number  of  months,  with 
still  another  table  which  contains  the  following  recapitulation 
of  the  results  of  the  series : — 


The  total  sum  received  in  the  16  months  on 
freight  to  Boston  and  Brighton  by  the  Boston 
and  Worcester  Railroad,  was 
And  at  the  end  of  that  time  there  was  due  and 
uncollected  on  this  very  freight,  . 

The  total  sum  received  thereon  in  the  year  1861, 
by  the  Boston  Worcester  Railroad,  was 
And  at  the  end  of  that  year  there  was  due  and 
uncollected  on  the  same,  .... 

The  average  due  and  uncollected  per  month, 
(on  the  16  months,)  was  .... 

The  average  receipts  per  month,  (on  the  16 
months,)  by  the  Boston  and  Worcester  Rail¬ 
road,  were  ....... 

The  average  due  and  uncollected  per  month, 
(1861,)  was  ...... 

The  average  receipts  per  month,  (1861,)  by  the 
Boston  and  Worcester  Railroad,  were  . 


$148,272  66 


78,726  06 


109,402  00 


110,053  86 


62,307  69 


9,267  04 


59,774  50 


9,116  83 


Next,  a  table  in  “  Illustration  of  the  effect  of  not  making 
a  special  allowance  for  loading,  unloading,  collecting,”  Ac., 


36 


showing,  that  in  the  case  cited  as  a  test, — loss  to  Boston 
and  Worcester,  and  gain  to  Western,  on  an  equal  number 
of  tons  to  each,  of  810,000.  Third,  44  Comparative  cost  per 
mile,  in  dollars,”  of  the  two  Roads,  “branches  excluded, 
when  practicable,  as  indicated  in  the  columns  of  miles;” 
with  the  figures  890,690  as  the  cost,  in  1861,  per  mile  of  the 
parent  Road,  and  810,117,  of  the  Western.*  Fourth,  “Illus¬ 
tration  of  4  tons  one  mile,’  or  80  barrels  flour  actually 
carried,” — (which  table  must  be  studied  in  order  to  be  under¬ 
stood) — showing  that  the  Boston  and  Worcester  received 
4tV0-  cents  per  barrel,  and  the  Western  38^0-  cents. f  Fifth, 
44  Illustration  of  4  tons  one  mile  ’  division  or  a  single  ton  of 
joint  freight,  year  ending  November  30,  1861,”  by  which 
it  appears  that  the  44  Boston  and  Worcester  would  carry  to 
Albany  for  nothing,”  and  pay  out  money  at  four  desig¬ 
nated  stations.  Sixth,  44  Tonnage  and  freight  receipts 
between  Boston  and  Stations  on  Western  Railroad,  and 
between  Albany  and  Brighton,  year  ending  November  30, 
1861,”  which  gives  the  Boston  and  Worcester  per  ton  per 
mile,  1t405o9o  ceids?  and  the  Western,  lyVo3o  ceilts  for  the 
same  ;  (this  result,  however,  under  the  Brooks,  Hinckley 
and  Iiigginson  Award,)  on  the  Brighton  and  Albany.  These, 
we  think,  are  sufficient; £  yet,  we  add 

*  This  table  contains  also  a  detailed  statement  of  the  “  Working  Expen¬ 
ses  ”  of  the  two  Roads  :  showing  “Average  for  three  years,”  for  G8  miles 
of  track,  Boston  and  Worcester,  $7,951,  and  Western  for  173  miles  of 
track,  $5,803. 

f  The  calculation  puts  this  flour  under  the  rule  “tons  one  mile,”  with 
first  class  freight  at  the  rates  of  the  tariff  between  Springfield  and  Boston. 

X  After  a  careful  study  of  the  remaining  tables  of  the  Boston  and  Wor¬ 
cester,  we  cannot  perceive  that  they  embrace  any  thing  relative  to  the  divi¬ 
sion  of  receipts  from  the  joint  business,  which  is  not  clearly  illustrated,  as 
far  as  the  opposition  of  that  Road  to  the  “tons  one  mile,”  is  concerned, 
in  the  previous  tables,  of  which  the  text  gives  the  results. 


37 


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Wc  add,  too,  in  set-off  to  the  answer  of  Professor  Peirce, 
a  comprehensive  passage  from  the  reply  of  Dr.  B.  A.  Gould, 
to  a  letter  addressed  to  him  by  the  Solicitor  of  the  Boston 
and  Worcester,  dated  May  1,  1862,  in  which  it  is  said  that 
that  Corporation  “  desire  to  present  to  the  arbitrators  [your 
Committee]  certain  computations  illustrating  the  effect  of 
the  different  principles  of  division  suggested  by  the  parties,” 
<fcc.,  Ac.  Having  examined  the  questions  put  to  him  and 
made  his  calculations,  as  concerns  the  actual  receipts  and 
tonnage  on  the  freight  between  Boston  and  certain  designated 
points,  which,  we  infer,  the  Solicitor  selected  to  prove  the  injus¬ 
tice  of  the  rule  of  u  tons  one  mile,”  generally  \  the  learned 
Doctor  states  his  conclusion  in  these  words :  “  While  the 
Worcester  Hoad  would  receive  87,325.96  on  the  sum  of  its 
shares  of  the  Clappville  and  Charlton  freight  alone,  and 
$<,315.21  on  its  shares  of  their  sums,  it  would,  by  the  rule 
of  the  T\  estern  Railroad,  receive  but  $6,738.66  after  carrv- 
ing  as  much  more  freight  bound  to  Albany  at  Albany  rates. 
Consequently,  by  doubling  the  work,  it  would  incur  an 
actual  loss  of  about  eight  per  cent,  on  freight  to  these  sta¬ 
tions  the  addition  of  the  Albany  business  entailing,  not 
only  a  relative,  but  a  positive  loss  of  $587.30,  or  $576.55,  as 

we  may  take  the  Clappville  and  Charlton  freight  separately 
or  jointly.” 

llie  Solicitor  of  the  Western  called  our  attention  to  twelve 
tables,  lettered  consecutively  from  “  A.”  to  “  L.”  inclusive. 
The  first  shows  that  for  the  year  ending  November  30,  1860, 
the  Boston  and  Worcester  received  2^8q8q-  cents  per  passen¬ 
ger  and  ton  per  mile,  and  the  Western  Table  “  B.” 

makes  the  same  comparison  lor  the  next  year,  with  the  result 
of  2i4o2o2o>  to  the  first,  and  of  2^ojl  to  the  last  named  Road. 
In  u  C.”  we  have  a  u  Comparison  of  passenger  receipts  per 


30 


mile  run,  of  joint  or  continuous  trains,”  <fcc.,  with  the  final 
figures  of  $1.40^2^-  to  the  short  Road,  and  $0. 88-^5-  cents, 
“  each  mile  run”  to  the  Western.  In  “D.”  the  statistical 
conclusion  is  that  the  “Per  cent,  joint  receipts. from  passen¬ 
gers  and  freight  ”  for  the  year  1859,  was  ‘8-^  per  cent.  011 
the  cost  of  the  Boston  and  Worcester,  and  6-^j  on  that  of  the 
long  Road.  I11  “  E.”  we  have  the  same  calculations  for 
1860,  with  the  result  of  8-^  and  of  7-^  ; — the  difference  in 
favor  of  the  short  Road,  as  in  the  preceding  year.  I11  “  F.” 
we  are  told  that,  in  1860,  the  cost  of  the  Boston  and  Wor¬ 
cester,  including  branches,  was  $4,738,441.70,  and  its  gross 
receipts  on  that  sum,  22I-J0-  per  cent. ;  while  the  same 
receipts,  on  the  cost  of  the  Western,  $11,029,079.41,  were 
only  17Tf  q-  per  cent,  on  cost.  Table  “  G.”  shows  that  the 
per  cent,  of  net  earnings  011  the  cost  of  the  short  Road,  aver¬ 
aged  for  the  two  years  above  mentioned,  was  HfW  an^  ^Jl1^ 
^  i¥o  the  other.  In  “  II.”  we  have  figures  to  show  that 
for  these  two  years,  the  u  excess  which  the  Boston  and  Wor¬ 
cester  received  over  the  amount  which  they  would  have 
received  at  the  rate  received  by  the  Western,”  was  $69,077.29. 
Table  “  I.”  represents  that  the  expense  (including  interest 
on  capital)  of  transporting  one  passenger  and  one  ton  one 
mile  in  1860,  was  •£££$  of  a  cent  more  on  the  Western  than 
011  the  connecting  Road.  We  omit  “J.”  and  “K.”  The 
final  table  compares  the  cost  of  the  two  Roads,  and  shows 
that  the  average  percentage  of  net  receipts  for  the  ten  years 
ending  with  1860,  was  9^3q-  by  the  Boston  and  Worcester, 
and  7-j^j-  by  the  Western. 

We  preserve  these  arithmetical  operations,  then,  not  only 
because  they  were  thought  of  moment  in  the  case,  but  because 
they  arc  valuable  for  reference,  and  afford  evidence  of  the 
estimable  mathematical  skill  at  the  command  of  these  Corpo- 


40 


rations,  and  of  the  admirable  system  of  “  counting  the  cost,” 
which  they  exhibit  in  moving  persons  and  things  from  Boston 
to  Albany,  and  on  the  branches  of  the  direct  line.  Again, 
we  retain  the*  concluding  figures,  specially,  to  prove  how  diffi¬ 
cult  is  the  task  of  adjusting  the  differences  between  these 
Corporations,  which,  we  cannot  doubt,  are  honestly,  and,  as 
it  is  our  fortune  to  know,  are  persistently  maintained. 
Indeed,  as  we  have  mused  upon  all  that  we  have  read  and 
all  that  we  have  heard,  we  have  thought — what  with  these 
vexed  figures,  and  these  contradictory  statements  of  wit¬ 
nesses,  even  of  66  experts,”  and  of  essential  disagreements  in 
memory  as  to  facts — what  would  be  the  award  of  Professor 
Peirce  and  of  Dr.  Gould  themselves  ? 

An  Award  for  a  single  year :  and  the  line  from  Boston  to 
Albany  co-existent  with  the  capacity  of  man  to  excavate 
earth  and  rock,  and  fashion  iron  and  wood !  Your  Com¬ 
mittee,  as  Referees,  met  the  representatives  of  this  line  on 
seventeen  days.  We  examined  forty-two  Annual  Reports, 
fifty-one  tables  of  statistics,  many  freight  and  passenger 
tariffs,  several  memorandum  books,  calculations  of  interest, 
and  heaps  of  other  pamphlets  and  papers.  We  listened  to 
arguments,  testimony,  and  conversations,  which,  as  written 
out  by  phonographers,  fills  four  hundred  and  fifty-six  foolscap 
and  ninety  letter  sheet  pages ;  and  we  had  nine  private 
consultations  after  the  hearing,  to  digest  and  to  dispose  of 
this  mass  of  matter.  And  all  this  time,  and  all  these  docu¬ 
ments,  simply  to  fix  terms  for  the  “joint  business”  of  the 
Boston  and  Worcester  and  Western  Railroads,  from  May  81, 
1862,  to  the  same  day,  Anno  Domini,  1863  !  What  next  ? 
Without  union,  what  ?  Probably  frequent  appeals  to  the 
Supreme  Court  for  Commissioners,  or  to  the  General  Court 
for  further  legislation,  or  to  Referees.  And  this  controversy 


41 


is  to  continue  ;  and  this  Board  is  to  hear — as  from  its  very 
organization,  it  has  heard — complaints,  and  just  complaints 
of  injury,  great  injury,  to  the  business  of  Boston,  and  of 
direct  consequence  to,  Massachusetts. 

This  city  bears  one-third  of  the  taxable  burdens  of  the 
Commonwealth  ;  while  on  every  public  emergency  our 
merchants  and  bank  officers  arc  compelled  to  meet  the  first 
and  principal  calls  for  pecuniary  aid  to  the  State  and  to  the 
Nation.  Carefully  enough  do  we  limit  our  remarks  on  a 
point  which,  if  discussed  now,  when  every  true  heart  beats 
only  to  save,  to  perpetuate  our  national  existence,  would 
invite  criticism  ;  yet  no  human  being  can  of  right  deny  that, 
in  the  nature  of  things,  Boston,  in  peace  and  in  war,  willing 
or  unwilling — if  any  one  will  have  it  so — must  respond  to 
every  invocation  for  men  and  means  to  promote  the  public 
weal.  In  the  fierce  competition  with  sister  cities  to  maintain 
our  commercial  supremacy  as  the  capital  of  the  extreme 
North,  and  in  the  intense  rivalry  of  lines  of  transport  by 
land  and  by  sea,  this  Board  may  claim — we  repeat  with 
emphasis — may  claim  help  of  every  man,  woman,  and  child 
in  Massachusetts,  in  the  removal  of  every  unnatural,  of  every 
corporate  obstacle  to  a  free,  to  an  unlimited  intercourse  with 
the  producers  of  breadstuff's  and  meats  in  the  great  West. 

Nearly  eighteen  years  have  elapsed  since  Committees  of 
the  line  whioh  connects  us  with  the  Hudson,  declared  in 
favor  of  union,  for  what  nature  so  clearly  marks,  “  a  single, 
distinct,  and  entire  route;”  and  the  results  of  rejecting 
their  recommendation  have  been  feebly  stated  in  this  Report. 
The  past,  in  our  judgment,  indicates  the  future. 

Awards  for  a  single  year :  for  the  time  which  a  mother 
nourishes  her  babe  at  her  bosom !  Annual  awards,  when  a 
whole  century  hardly  marks  the  extreme  limit  of  human 

c 


42 


life  !  Commissioners  or  arbitrators  to  determine  from  one 
month  of  May  to  another,  how  two  railroads  shall  divide  a 
certain  part  of  their  earnings !  Yearly  criminations  and 
recriminations  ;  honest,  yet  serious  disagreements  in  matters 
of  fact ;  accusations  that  one  Corporation  fills  its  coffers  at 
the  expense  of  the  other ;  averments  and  denials  of  framing 
local  tariffs  to  promote  the  growth  of  certain  places,  and  to 
divert  the  business  of  Western  Massachusetts  from  Boston 
to  New  York ;  allegations  that  one  Road  cares  more  for  its 
connection  with  Norwich  than  with  Albany,  and  retorts  that 
the  President  of  the  other  cares  too  much  for  his  private 
interests  as  a  Director  and  large  stockholder  in  competing 
lines ;  continual  additions  to  disputed  items  which  already 
exceed  eighty  thousand  dollars ;  appalling  exhibitions  of 
unsettled  freight  bills,  because  of  imputed  remissness  of  the 
only  party  that  possesses  the  power  to  apply  a  remedy  ; 
altercations  which  prevent  the  settlement  of  accounts  year 
after  year ;  *  intimations  from  the  short  Road  that  its  “  natural 
connection”  is  with  the  “Tunnel,”  and  the  reply  of  the 
Western  that  with  legislative  sanction,  that  Road  may  be 
extended,  and  reach  Boston  “  by  a  line  wholly  independent,” 
statements  and  denials  of  copartnership  relations  ;  and  accu¬ 
mulating  complicities  which,  finally,  the  most  acute  minds 
may  find  utterly  insoluble.  Why,  the  present  difficulties,  so 
rapidly  enumerated ;  why,  “  on  a  single,  distinct,  and  entire 
route,”  why  relations  which, — as  under  the  Brooks,  Hinckley 
and  Higginson  Award, — require  the  construction  and  con- 

*  Mr.  Hayes,  cashier  of  the  "Western,  stated  to  the  chairman  of  the 
Committee  and  to  the  Secretary  of  the  Board,  that,  he  “  had  been  in  the 
service  of  that  Road  about  twelve  years,  and  that  there  had  been  only  one 
admitted  balance  of  account  between  the  two  Roads  for  that  whole  period, 
which  balance  is  even  now  in  dispute,  so  that  in  fact,  there  has  been  no 
actual  settlement  for  these  twelve  years.” 


43 


stant  use  of  a  table  containing  about  twelve  thousand  figures  ?* 
Who,  that  remembers  the  eloquent  appeals  in  Faneuil  Hall 
and  elsewhere,  to  induce  subscriptions  to  stock  for  communi¬ 
cation  by  rail  with  Worcester,  can  doubt  for  a  single  instant 
that  all  the  arguments  then  addressed  to  the  patriotism  and 
interest  of  the  people  of  Massachusetts,  to  complete  that 
enterprise,  would  have  as  cogently  urged  for  the  same  con¬ 
nection  with  Albany,  had  it  been  thought  possible  to  obtain 
the  requisite  amount  of  capital  ?  Who  does  not  know  that 
the  persons  named  in  the  Act  of  Incorporation  of  the  West¬ 
ern,  were  the  Directors  of  the  Boston  and  Worcester,  for  the 
year  1833.  f  And  yet,  twenty  years  after  the  former  was 
opened  to  the  Hudson,  this  “  single,  distinct,  and  entire 
route  ”  is  divided,  at  variance,  and  exhibits  at  every  disclo¬ 
sure  to  Commissioners  and  to  Referees,  elements  so  discord¬ 
ant  as  to  recall  the  medley  fused  by  the  poet’s  brain,  in  the 
cauldron  of  the  three  witches  in  Macbeth. 

This  Report,  much  too  long,  on  a  subject  of  ordinary 
interest,  will  now  be  concluded  in  the  words  of  the  Commit¬ 
tees  $  of  the  two  Corporations,  in  1845.  “In  the  first  place,” 
they  say,  “  the  great  Western  route,  from  Boston,  the  capital 


*  [Copy.] 

Boston  and  Worcester  Railroad,  General  Freight  Office,  > 

Boston,  June  1G,  18G2.  5 

G.  Twichell  : — Sir, — In  reply  to  Mr.  Sabine’s  inquiry,  I  would  state  that 
the  large  table  referred  to  by  him,  contains  4,200  sets  of  figures — averaging 
nearly  three  figures  to  a  set.  Respectfully, 

(Signed)  H.  Earl. 

f  Nathan  Hale,  David  Henshaw,  George  Bond,  Henry  Williams,  Daniel 
Denny,  Joshua  Clapp,  and  Eliphalet  Williams. 

X  Jona.  Chapman,  S.  Bartlett,  John  Hathaway,  Moses  Williams,  Com¬ 
mittee  on  the  part  of  the  Boston  and  Worcester  Railroad  Corporation ; 
Josiah  Quincy,  Jr.,  Addison  Gilmore,  H.  Andrews,  Joseph  Whitney,  Com¬ 
mittee  on  the  part  of  the  Western  Railroad  Corporation. 


44 


of  New  England,  to  Albany,  which  is  the  gateway  of  the 
West,  is  so  clearly  marked  as  a  single ,  distinct  and  entire 
route ,  that  it  must  strike  every  one,  as  the  most  natural  and 
proper  course,  that  the  great  channel  of  railroad  communica¬ 
tion  between  these  two  prominent  points,  should  be  one 
likewise. 

“  Iii  the  second  place,  there  will  be  a  very  considerable 
saving  in  the  expenses  of  management,  and  in  doing  the  busi¬ 
ness  of  the  line,  if  these  two  Roads  are  made  one.  A  less 
number  of  officers,  agents  and  subordinates  will  be  required. 
The  engines  and  cars  of  all  kinds  can  be  more  advanta¬ 
geously  arranged  and  economically  used.  A  smaller  aggre¬ 
gate  of  motive-power  will  be  sufficient  for  the  work  of  the 
whole  line,  if  under  one  administration,  to  say  nothing  of 
the  better  system  and  efficiency  that  can  be  introduced. 
And  many  of  the  expenses  which  both  the  present  companies 
must  now  incur,  will  be  required  but  once  for  the  whole 
line,  if  united  in  one. 

“In  the  third  place,  by  bringing  about  the  proposed  union, 
an  end  vnll  be  put  forever  to  all  those  perplexing  questions, 
and  difficult  and  expensive  controversies ,  which  have  already 
arisen ,  and  are  likely  continually  to  arise  between  two  com¬ 
panies  situated  like  those  in  question.  It  is  believed  by  your 
committees  that  the  tendency  of  these  controversies  between 
contiguous  railroad  companies ,  is  prejudicial  to  the  public 
interests ,  and  to  the  safety  and  value  of  the  private  property 
in  their  stocks  *  And  this  last  must  be  felt  to  be  a  peculiarly 
important  consideration,  in  a  case,  where  the  Commonwealth 
is  a  large  owner  and  a  large  creditor  of  one  of  the  companies, 
and  yet  the  umpire  in  all  questions  between  the  two.” 


*  The  Italics  in  this  paragraph  are  ours. 


45 


And  they  say,  finally,  that  they  “would  recommend  to 
their  respective  companies,  the  adoption  of  the  proposed  plan 
of  union,  and  such  acts  on  the  part  of  each,  as  may  be 
necessary  to  carry  it  into  effect.  And  as  they  have  so  entirely 
agreed  upon  all  points  of  the  subject  committed  to  them, 
they  have  thought  best,  instead  of  separate  reports  to  each 
company,  to  make  this  joint  report  to  both.” 

These,  be  it  remembered,  are  the  views  of  every  member 
of  the  two  committees.*  And  the  Hon.  Nathan  Hale — a 
name  never  to  be  pronounced  without  emotions  of  the  most 
profound  gratitude  and  honor — when  President  of  the  Boston 
and  Worcester,  gave  his  approval  to  the  measure  thus, 
at  the  opening  of  his  “  Remarks  “  I  have  no  hesitation  in 
expressing  the  opinion  that  advantages  of  some  importance 
would  result  from  a  union  of  the  two  railroads  in  one  inter¬ 
est,  and  placing  the  direction  of  them  under  one  manage¬ 
ment.”  ******  And  again:  “I  conclude 
by  repeating  the  opinion,  that  a  union  of  the  two  companies 
will  be  advantageous  to  the  proprietors  of  both,  in  securing 
a  unity  of  action,  and  removing  the  possibility  of  a  collision 
of  interests,  by  blending  them  in  one  concern,  under  a  single 
management,  provided  it  can  be  accomplished  on  such  a 
basis,  as  will  secure  to  the  proprietors  of  each,  their  just 
share  of  the  joint  property.” 

As  now,  we  submit  the  results  of  our  investigations  to  the 
Government  of  this  Board,  we  cannot  but  invite  attention  to 
the  fact,  that  we  have  expressed  no  opinion  upon  the 
relative  merits  of  the  controversy  which  has  so  long  existed 
between  these  large,  useful,  and  prosperous  Corporations. 

*  Theodore  Lyman,  on  the  part  of  the  Boston  and  Worcester,  declined 
to  serve;  Edward  Austin,  selected  by  the  Western,  was  absent  from  the 
country. 


46 


Our  judicial  functions  ceased  with  the  hearing  and  with  the 
Award.  Our  duty  on  the  present  occasion  is  simply  histori¬ 
cal.  Indeed,  at  no  period — whether  as  Referees,  or  as  your 

Committee — have  we  permitted  reflections  which  would  lead 
/ 

to  the  least  partiality  or  discrimination  ;  and  we  part  with 
the  Boston  and  Worcester,  and  Western  Railroad  Corpora¬ 
tions  without  an  unkind  thought  to  either.  The  difficulties 
of  which  we  have  spoken  are  intrinsic ;  and  the  common 
fault  is,  that  neither  will  make  the  only  movement,  which, 
— as  seems  to  us — can  produce  harmony  of  action. 

Both  Roads — as  relates  to  system  in  details,  division 
of  labor,  and  economy — are  admirably  managed ;  our 
regret,  our  deep  regret  is,  that  the  Presidents — Ginery 
Twichell  and  Chester  W.  Chapin  —  who  are  gentlemen 
of  marked  ability — are  so  much  devoted  to  rules  of  dividing 
the  receipts  of  the  “joint  business,”  that  a  considerable 
portion  of  their  intellectual  power  is  absolutely  lost  to  the 
public. 

For  the  many  courtesies  of  both,  for  the  ready  conformity 
to  our  wishes  by  the  highly  respected  Solicitors,  Messrs. 
George  S.  Hale  and  James  D.  Colt,  and  for  the  important 
information  imparted  by  the  several  officials  at  Springfield, 
Albany,  and  Boston,  we  beg  to  record  our  cordial  acknowl¬ 
edgments. 

Respectfully  submitted. 

C.  0.  WHITMORE. 

GEO.  C.  RICHARDSON. 

NATH’L  HARRIS. 

JAS.  II.  BEAL. 

JOSEPH  S.  FAY. 


Rooms  Board  Trade,  August  fl. 


•• 


f ' 


V 


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